Home Secretary Smith 'set to quit'

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The source said she had been "hurt" by revelations about her expenses claims and spoke to Prime Minister Gordon Brown about her plans to stand down about two months ago.

The source said she was planning to defend her Redditch seat at the next general election.

In March, Ms Smith was humiliated by disclosures about husband Richard Timney's claims for adult films on her MPs' expenses.

She is also said to have bought him a £240 Apple iPhone on her office expenses. He is employed by her as an assistant.

She also billed taxpayers for her accountancy costs and £1,600 for three digital cameras and a camcorder over three years.

The source said: "She's been hurt by what's gone on and it's been a difficult couple of months for her."

Ms Smith was due to appear in the Commons on Tuesday afternoon, opening a debate on the Borders, Citizenship and Immigration Bill.